Unformatted text preview: curve. S or C is the average cost of producing output Q in which the total cost will be TC = OQ × AC = OQSC The profits of the monopolist as the difference between TR and TC are, Profits = TR - TC = OQRP - OQSC = CSRP Hence CSRP are the monopoly profits. These profits look similar to Super Normal profits under competition....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10